Mon. Jan 25th, 2021

UK house prices rise despite general election uncertainty – business live

Rolling coverage of the latest economics and financial news

8.52am GMT

Howard Archer of EY Item Club predicts that house prices will keep rising by around 1% in the near term.

There are factors pushing prices up, he points out. Consumers have more purchasing power, thanks to wage growth, and interest rates are near record lows. There’s also a shortage of houses on the market, thanks to Britain’s failure to build enough new homes.

8.37am GMT

As it’s general election time, Nationwide have crunched their data to show how the housing market has fared whenever Britons went to the polls.

As you can see, mortgage approvals jumped after David Cameron was surprisingly returned to Number 10 in 2015…. but slid after the ex-PM lost his Brexit referendum the following year.

“While activity slowed in the period immediately following the EU referendum, this was a continuation of a trend that was driven by the introduction of additional stamp duty on second homes earlier in that year.

“It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.

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